Siebel CRM On Demand Provides Enterprise-Class Power for Companies Large and Small

Customer Wins, Rapid Product Development Cycle and Increased Industry Recognition Underscore CRM Leader?s Hosted Software Momentum

SAN MATEO, Calif.- October 17, 2005 - Oracle Corporation (NASDAQ: SEBL), a leading provider of customer-facing solutions, today highlighted the unprecedented growth and innovation of Siebel CRM On Demand. As disclosed in the company?s preliminary third quarter earnings announcement and investor conference call, total contract value for the third quarter of 2005 for Siebel CRM On Demand is expected to be approximately $11M, an increase of 49 percent year-over-year. These strong results have been driven by customer wins around the world among large enterprise organizations and SMBs (small and medium-sized businesses) alike and by Oracle?s more than 100 solution and technology partners. Siebel CRM On Demand has also continued to be recognized by leading industry analysts and recently won two prestigious awards. In addition, Oracle?s hosted software solutions and deployment capabilities are a critical enabler of its new Customer Adaptive Solutions Applications Strategy and Architecture, announced separately today. Oracle Customer Adaptive Solutions enable organizations to better understand and adapt to the needs of their customers in response to rapidly changing business requirements (see separate press release for additional information).

?We are delivering a complete solution, not just a toolkit, in a simple-to-use, fast-to-deploy hosted application,? said Keith Raffel, Group Vice President, Siebel CRM On Demand Products. ?Our customers want the kind of enterprise-class solution that Oracle is known for, with pre-built, advanced analytics features and a fully integrated Siebel CRM Call Center On Demand.?

Growing Worldwide Customer Demand

Oracle?s hosted solutions continue to gain increased usage among companies of all sizes worldwide. New customers turning to Oracle?s hosted CRM solution to drive sales, marketing and services success include:

• Pulte Homes, the largest U.S. homebuilder by revenue with operations in 54 markets and 28 states, selected Siebel CRM On Demand and Siebel CRM Call Center On Demand to simplify its business and the critical interactions for thousands of sales professionals whose primary focus is to deliver an exceptional homebuying experience to customers. Oracle Corporation' strategic vision, customer service, and proven expertise combined to make Pulte Homes' choice a low-risk decision.
• Kingway CAPS, based in Exeter, NH, is a leader in the newly emerging pick-by-display market. CAPS-Computer Assisted Picking System-is the company?s automated order selection system that doubles the productivity of order picking in warehouses while virtually eliminating pick errors. With more than 100 CAPS installations globally, the company selected Siebel CRM On Demand to help it provide more accurate sales forecasts, quicker lead qualification, and timely customer support.
• Lesite.tv, a division of France 5, the French national knowledge channel, consolidates educational content for teachers and students and distributes it via its Web site-www.lesite.tv. The company chose Siebel CRM On Demand to help introduce a new education initiative aimed at increasing lead transformation, improving customer satisfaction, enhancing pipeline management and visibility, and accelerating deal closure.

Rapid Pace of Product Innovation

Key to the momentum of Oracle?s hosted CRM solutions has been the company?s rapid pace of innovation, which has enabled the delivery of major capabilities at a five-to-ten times faster rate than other hosted vendors. Since its launch, Siebel CRM On Demand has released nine upgrades, including:

• the industry?s first and only real-time and historic analytic capabilities
• a unique Sales Process Coach for replicating sales success
• the first and only pre-built vertical editions (Financial Services, High Technology, Life Sciences, and Automotive)
• marketing segmentation capabilities
• out-of-the-box support for both Microsoft Outlook and Lotus Notes
• the first Siebel CRM Call Center On Demand solution available as a built-in option to Siebel CRM On Demand

?Small and medium-sized businesses turn to Siebel CRM On Demand because it was built based on the company?s 11-plus years of CRM experience,? said Rob Reid, Group Vice President, SMB, Oracle Corporation. ?With Siebel CRM On Demand, companies of all sizes can take advantage of advanced CRM functionality via a delivery model that is easy to use and cost-effective.?

Strong Global Partner Presence

In a little over one year since European language versions of Siebel CRM On Demand were made available, Oracle has measured strong global momentum in the Small and Medium Business (SMB) market. Driven by the launch of its SMB initiative in December 2004, Oracle is continuously strengthening its channel management and marketing team to respond to growing demand and has added more than 100 channel and technology alliance partners worldwide, including 36 channel partners in Europe, 12 in North America, and eight in Latin America.

Positive Endorsements and Awards from Industry Experts

The latest positive analyst report is Nucleus Research's ROI Scorecard (for the On-Demand CRM Market). Siebel CRM On Demand received a higher overall customer satisfaction rating than Salesforce.com for its hosted CRM solution, garnering a 4.4 out of 5.0 in five key areas that factor into overall customer ROI. Oracle bested Salesforce.com in Vendor, User Adoption/Satisfaction, and Business Impact, reflecting the importance of business dealings with Oracle Corporation and value-added product capabilities such as analytics, data warehousing, Siebel CRM Call Center On Demand, sales forecasting, business processes, and industry vertical editions.

The On-Demand CRM Market report can be viewed at the Siebel CRM On Demand Web site, www.crmondemand.com.

In addition, Siebel CRM On Demand received the coveted award for Best Execution of a Midmarket IT Solution by attendees at this year's Midsize Enterprise Summit. Produced by Vision Events?, a Gartner, Inc. (NYSE: IT and ITB) company, Midsize Enterprise Summit is solely focused on the requirements of midsize businesses and attracts CIOs and senior IT executives from midsize companies across a wide range of industries. CRM Magazine also selected Oracle Corporation as a Market Leader in the Midmarket, category of the 2005 Market Leader Awards.

About Siebel CRM On Demand

Siebel CRM On Demand is a hosted CRM offering delivered over the Web and accessible from an Internet browser at a fixed price per user per month. Customers can deploy Siebel CRM On Demand quickly, easily, and affordably without any up-front IT investments. Hosted by IBM, Siebel CRM On Demand delivers complete sales, marketing, and service functionality; built-in customer analytics; virtual call center technology; embedded best practices; and world-class hosting services and support. Siebel CRM On Demand is now available for purchase. For more information, visit www.crmondemand.com.

Media Contact:
Ari Entin
Bite Communications
415-365-0403
Email: ari.entin@bitepr.com

Except for the historical information contained herein, this press release contains forward-looking statements that involve risk or uncertainties. Future operating results of Oracle Corporation may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with customer relations, such as the availability of Oracle Corporation' products and services, customer implementation of products and services, relationships with customers, third-party vendors and systems integrators, concentration of revenues in a relatively small number of customers, existence of errors or defects in products, ability to successfully manage growth, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Oracle Corporation are included in Oracle Corporation' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Oracle Corporation assumes no obligation to update the information in this press release.

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